WE CONTINUED DELIVERING YEAR ON YEAR GROWTH IN FY15 WITH RECORD REVENUES, A 46% INCREASE IN UNDERLYING NPAT TO $8.8 MILLION AND AN INCREASED FULL YEAR DIVIDEND OF 25 CENTS PER SHARE.
The FY15 results reflect the divestment of the orthotics and pathology businesses during the year and the corresponding loss in earnings contribution following each business sale. These businesses were sold for $11.1 million and with the resulting $9.0 million non-cash loss and reduction in goodwill, Abano reported a Net Loss After Tax of $(1.3) million.
Underlying Net Profit after Tax was $8.8 million, up 46% on last year.
FY15 revenue and gross revenue of $222.2 million and $300.4 million respectively were both up on last year. The increase was primarily driven by our expanding dental business and strong growth from the Australian audiology operations.
The majority of our revenue was from our dental sector which provided 70% of gross revenue, with audiology providing 13%. Diagnostics, which included radiology and the divested pathology business, provided 14% and the rehabilitation sector, which was the orthotics business which was divested in January 2015, provided 3%.
Following the business sales, we now expect that more than 60% of our revenue will be generated offshore, with the majority of this in Australia. Importantly, the divestments significantly reduce our reliance on public funding. Moving forward, more than 90% of our revenue will be from private sources with less than 3% derived from New Zealand public contracts in radiology and 5% derived from Australian public funding, primarily in audiology.
Our EBITDA and Underlying EBITDA continue to steadily improve. Dental, audiology and radiology all maintained or improved margins during the year, with EBITDA of $29.6 million. Underlying EBITDA, which also excludes acquisition costs, was $30.7 million.
Underlying earnings are the measure used within the company to evaluate performance. Underlying NPAT is the basis for the Company’s dividend policy and the Board believes it provides a more appropriate representation of Abano’s performance.
We maintain an efficient balance sheet with effective use of funds and have strong relationships with our banking partners. During the year, we re-negotiated our banking facilities to extend the tenure and achieve more favourable pricing. Year-end net bank debt was $86.1 million and as at 31 May 2015, we had undrawn facilities of over $50 million, providing headroom for continued growth.
We have a lean management structure, with each of Abano’s businesses run as a standalone operation with oversight from the Abano executive team.
The clinical and management skills of the people in our businesses are essential to our success and we will continue to invest to help them realise their potential. Our thanks go to all Abano’s employees for their professionalism, commitment and dedication to their disciplines, organisations and to their clients.
Read more on Abano's financial results in FY15.
NEXT > Operational Review Dental